Will finalise guidelines for upgrading ITI scheme by September-end: Tiwari

He explains the idea behind the scheme and the challenges ahead

The Skill Ministry will lead government’s efforts to upgrade 1,000 Industrial Training Institutes (ITIs) in a hub and spoke model under a centrally sponsored scheme with an outlay of Rs 60,000 crore. In an interview with Shiva Rajora and Asit Ranjan Mishra in New Delhi, Secretary in the Ministry of Skill Development and Entrepreneurship Atul Kumar Tiwari explains the idea behind the scheme and the challenges ahead. Edited excerpts:

The Union Budget has turned the spotlight on skill development as a tool for employment generation, with the finance minister's emphasis on upgrading 1,000 Industrial Training Institutes (ITIs). What is your assessment?

The Union Budget has brought back the focus on ITIs, which have been the foundation of the long-term (skill) training in the country. With the changing times, the ITIs need an upgrade. We also have to break the conundrum wherein states are incentivised [to improve the ITIs]. This scheme shows the central government’s thrust on skilling and highlights the role industry and states have to play in this regard. 

What will the modalities of this scheme be? Has the ministry prepared a blueprint for the same? 

Our ministry is planning to undertake one-on-one consultations with industry associations in key sectors. For example, [with] Tata Projects, L&T, Credai for the construction sector, green energy, textiles and garments, advanced manufacturing, heavy engineering, automobiles, process industry, electronics, and telecom. These consultations will be essential for the synthesis of the scheme to ensure optimum funding, improve state and industry participation, and prepare detailed guidelines. A state government will also be consulted extensively over the coming weeks to seek inputs. There will be 200 ITIs developed as hubs, while 800 will be developed as spoke, connected with five National Skill Training Institutes.

Previously, there were attempts to improve ITIs. How is this new programme different? 

This scheme will adopt a challenging method for selecting ITIs, ensuring state participation, industry collaboration, and an outcome-driven implementation strategy, making it distinct from previous efforts. The financial assistance provided under various schemes in the past was suboptimal to cover the entire upgrade needs of the ITIs to meet growing investment needs for infrastructure upkeep, capacity expansion, and the introduction of capital-intensive new-age trades. For the first time, the role of industry will be measured in quantifiable terms and will help the ITIs.

Has the industry agreed to pay Rs 10,000 crore share in the scheme? Will this money come from CSR funds? If not and this is voluntary, then the industry may choose not to participate.

The industry has been helping state governments in modernising ITIs. This scheme will provide a kind of framework wherein the three stakeholders (centre, states and industry) will be roped in. Some sectors, which have enhanced the demand for skilled workers like textiles, construction, telecom, and automobiles, will try to bring industries in these areas in a cluster-based format and develop the course and curriculum in tandem with their demand. 

The [Rs 10,000 crore] component will come from industry. We are not saying it is CSR or anything, it has to come from the industry, like the Tata group carved out a separate company, which is running two skills schools --- one in Mumbai and the other in Ahmedabad. It doesn't mention CSR, but goes beyond it. The industry has to come in suitable ways to help us. We hope that more entities will come. We have created a framework in which we will have to work and create a win-win situation and incentives for the industry to come forward and collaborate and improve the situation in ITIs. 

When do you expect the guidelines to be finalised? 

The Budget lays out the broad contours of the scheme. We just have to link them together. We are already having consultations with stakeholders. By the end of September, the guidelines are expected to be finalised.         

Vacancies in ITIs - both in terms of students and faculty - are causes for concern. How will this scheme look to improve upon this aspect? What will be the role of state governments and industry?

Filling the posts of instructors is an administrative matter for the respective state governments. Under the scheme, the recruitment of instructors and the provisions in the Budget by state governments would be a necessary condition for the release of grant-in-aid. 

Support from the industry for course design, trainers, and machinery will be worked out and it also provides for capacity augmentation of the five National Skill Training Institutes, which will support the training of ITI trainers. Further provision for pre-service and in-service training for 50,000 individuals will also be included under the scheme. It is anticipated that redesigning courses to align with industry requirements under the scheme will enhance their appeal and boost enrolment. 

With the announcement of the internship scheme in the Union Budget, what happens to the apprenticeship programme? 

Internship is not apprenticeship. Apprenticeship programmes will continue and the data shows positive growth in the uptake of apprentices in the companies. It is regulated and obligatory under the Apprenticeship Act 1961, which puts the onus on the firms to hire apprentices, while internship is voluntary by nature.

The Budget also announced the model skill loan scheme. Given that such a scheme was already in place. How is the new scheme different from the previous scheme?

Some skilling programmes are expensive and this scheme will help facilitate students to avail easy financing for these programmes. The revised scheme will facilitate loans up to Rs 750,000 compared to Rs 150,000 earlier, and will cover courses other than those aligned to the National Skill Qualifications Framework, provided the courses are available on the Skill India Digital Hub portal. The new credit guarantee scheme has now been extended to non-banking financial companies, microfinance institutions, and small finance banks.